Jobseeker's Allowance

Jobseeker's Allowance (JSA) is a form of unemployment benefit paid by the Government of the United Kingdom to people who are unemployed and actively seeking work. It is part of the social security benefits system and is intended to cover living expenses while the claimant is out of work.

JSA is administered by the Department for Work and Pensions (DWP) in England, Wales, and Scotland, and in Northern Ireland by the Social Security Agency – an executive agency of the Department for Social Development. Claimants must be between 18 years of age and the State Pension age.[1]

There are two forms of Jobseeker's Allowance, contribution-based and income-based. Universal Credit was due to replace Jobseeker's Allowance and other benefits for 500,000 new claimants from October 2013,[2] and eventually will replace income-based Jobseeker's Allowance entirely.[3]

To be eligible for JSA, claimants must state that they are actively seeking work by filling in a Jobseeker's Agreement form and attending a New Jobseeker interview (NJI). They must also go to a Job Centre every two weeks to "sign on", that is, to certify that they are still actively seeking work. Claims for Jobseeker's Allowance are maintained by the Jobseeker's Allowance Payment System (JSAPS).

Legislation

Main article: Unemployment benefits

Earlier history

The first unemployment benefits were paid in 1911 under the National Insurance Act 1911 to job seekers who had paid National Insurance contributions ("the stamp"). The maximum amount payable was seven shillings a week.[4] These payments were thus made only to people who had recently been in work, and not simply to those on low incomes. Furthermore, benefits were only paid for up to twelve months, by which time a claimant had to have regained work.

The Unemployment Insurance Act of March 1921 introduced a 'seeking work' test which required claimants to be actively seeking work and willing to accept employment paying a fair wage. In February 1922 a means test was introduced which excluded some, such as single adults who lived with relatives, from receiving benefit payments.[4]

As a direct consequence of the return from war of injured servicemen,[5][6] the Disabled Persons (Employment) Act 1944 was brought into force to enable these to secure employment.[7][8] After the Second World War, the National Assistance Act 1948 was passed, allowing anyone of working age on a low income to apply for support. National Assistance was replaced by Supplementary Benefit in November 1966, and Unemployment Benefit claimants could transfer to this after their initial entitlement had expired. Supplementary Benefit was later replaced by Income Support in April 1988.

The Social Security Contributions and Benefits Act was brought into force in 1992.[9]

Legislation

During 1995 legislation was passed through the House of Commons entitled the JobSeekers Act.[10][11] The 1995 Act introduced the term job-seeking to describe a new benefit. The Jobseeker's Allowance Regulations of 1996 (S1 1996/207) were produced within a period of six months from the act coming into force, with the change of Income Support provision to Jobseekers allowance occurring on October the 7th 1996.[12] Previously during September the 11th 1996 the Social Security (Credits and Contributions) (Jobseeker's Allowance Consequential and Miscellaneous Amendments) Regulations were created, brought before parliament five days later and subsequently made policy coming into force also on 7 October.[13][14]

The change was introduced to streamline the systematic administration of benefits by improving claimant compliance and to partially remove the distinction between means-tested claimants and those claiming against contribution records.

Subsequent legislation

in April 2011 Iain Duncan Smith introduced a period of mandatory work activity amounting to a maximum of four weeks of thirty hours each week in employment. It was expected this activity would be required of approximately 10,000 individuals. The main claimants who it was expected would be subject to mandatory work activity were those who had been signing-on for at least thirteen weeks. Despite this any recipient of Jobseeker-benefit could be required to take part in work activity regardless of how long that person had been signing on.[15]

At some time the Social Security Advisory Committee felt a need for an initiative so The Employment Skills and Regulations Scheme was considered. The governmental bodies had a look at the ideas and felt they weren't altogether correct. So the government only accepted the need for two-thirds of the total of changes suggested.[16] During 2011 the Jobseeker's Allowance (Employment, Skills and Enterprise) Regulations were brought into force. One part of the scheme required the long-term unemployed to participate in unpaid work activity for a maximum of six-months.[17][18]

Statistics

Roughly 2% of welfare expenditure in the UK is spent on Jobseeker's Allowance; the bulk is spent in other areas.[19]

The average number of claimants between the years 2003 and 2008 was 814,000, and average number of new claims was approximately 2,463,000.[20] Nearly 40% of income-based claimants during 2003, were also claiming Housing Benefit.[21] The DWP for England and Wales showed one third of the total number of claimants for JSA were persons having been convicted of a crime resulting in their act(s) having been recorded by the police authorities.[22][23] In the Guardian newspaper in March 2001, the success of the New Deal scheme was reported, the report stated that 270,000 people were found full-time employment and the cost of achieving this end was half of the estimated amount.[24] According to a report in 2008 by the Social Market Foundation there were approximately 100,000 long-term unemployed persons claiming JSA, at any given time.[25]

From 2010 to April 2011 the number of claimants having sanctions imposed "soared" to 75,000 persons amid claims that DWP staff deliberately made claiming more difficult and were required to refer 3 people a week for sanctions. The number of disabled people sanctioned doubled to 20,000 over the same period. The Department for Work and Pensions denied targeting vulnerable people.[26]

Application methods

According to the UK government webpage on how to apply, application can be made online or by phone.[27] Application can also be made on paper forms; JSA1, or JSA4RR if reclaiming JSA.[28]

Jobseeker's agreement

When claimants attend their first Jobseeker Interview, they are required to sign a contract with their advisor.[29][30][31] The contract can be changed at one-to-one interviews. Its terms include that claimants state:

Whether claimants are paid therefore depends on whether they uphold the contract they have agreed to – from a political theory known as Welfare Contractualism, first expressed in the 1998 paper New Ambitions for our Country: A New Contract for Welfare[32][33]

“ at the heart of the new state will be a contract between citizen and government based on responsibilities and right [34] ”

Sanctioning

In certain cases, a claimant's Jobseeker's Allowance may be stopped. A person choosing to remain out of employment should a vacancy be available is obliged to give a "good reason" for the choice, or else their monies are to be withheld,[29] also:

Payment will be stopped for between 4 weeks and 156 weeks (about 3 years).[36]

Criticism of sanctions

The charity Oxfam opposed what they consider unfair sanctions

We [Oxfam] have spoken to people who have had delays and sanctions for mundane reasons, such as not having the right ink to fill an application or missing appointments due to sickness which is unacceptable. Any sanctions system needs to operate in a way that does not push people further into poverty. People need support not punishment. They need understanding not condemnation.[35]

The Guardian has listed ten cases of stopped benefits which it regards as either for “trivial reasons” or due to DWP “administrative errors.” The former included three people who were in hospital due to their own sickness or attending a sick partner and a person who went for a job interview instead of attending the job centre. The latter included letters sent by the DWP to the wrong address and people who arrived on time at the job centre but found an unusually long queue.[37] The Independent cites a man who had a heart attack during a work capability assessment and was sanctioned for not completing it.[38] Two cases show reasonably foreseeable consequences for sanctioned diabetic claimants, one resorted to begging for food [39] whilst another who was apparently unable to afford to keep his insulin properly refrigerated was found dead, leading to a parliamentary select committee investigation of sanctions.[40] In the last quarter of 2013 there were 227,629 claimants sanctioned, a rise of 69,600 compared to the equivalent time in 2012.[41] Over a million British claimants were sanctioned between October 2012 and December 2013. 633,000 got their benefits back after referral and 580,273 referrals were cancelled.[41] Even when benefits are restored on appeal the stress sanctions cause can worsen mental health.[42]

In June 2015, a judge ruled that the terms imposed on a claimant, who was an ME sufferer with visual impairment who was twice required to travel to attend an assessment, were irrational.[43]

Alleged pressure on Job centre staff

According to Patrick Wintour in the Guardian, job centre staff were threatened they would be disciplined and given targets because it was felt too few claimants were sanctioned. Statistics are kept about the proportion of claimants sanctioned at each job centre and those with relatively low proprtions of claimants sanctioned can face questions. There has been a 'climate of fear' at job centres with staff under pressure to sanction innocent people to meet targets.[44] Also sanctions harm the children of sanctioned claimants. Sanctioned claimants and their families sometimes need food banks to get something to eat.[41][45] The government was urged to review the effects of sanctions in particular on claimants with psychiatric problems and disabilities.[46] People with Learning disability frequently have trouble understanding what is required of them. James Bolton of Mencap said,

Learning disability is often misunderstood or ignored by advisors and, as a result, essential simple adjustments aren’t made to help individuals complete the tasks they are often unfairly set, or even help them understand what sanctions are. Instead, people with a learning disability have been sanctioned again and again for not completing tasks which they simply were not able due to their learning disability.[47]

Eligibility

All applicants qualify by conforming to all of the following requirements:
  1. being 18 or over but below State Pension age - there are some exceptions if you’re 16 or 17.[48]
  2. not being in full-time education.[48]
  3. living in England, Scotland or Wales.[48]
  4. being available for work.[48]
  5. actively seeking work.[48]
  6. working on average less than 16 hours per week.[48]
  7. attending a JSA interview after they apply.[48]

Contribution-based

The payment of those outside of employment an allowance of money, is a type of social insurance.[49]

Contribution-based Jobseeker's Allowance (JSA(C)) entitlement is based on Class 1 National Insurance contributions in the two complete tax years preceding the benefit year of claim. This allowance is paid regardless of assets;[50] however, whilst this statement applies to "savings, capital or a partner's earnings", there are other caveats which exclude payment. For instance, any personal or occupational pension over £50 a week result in deductions.[51] Thus many older citizens seeking work are excluded, despite qualifying through NI contributions payments, because they have pension income.

Certain other benefits including Statutory Sick Pay, Statutory Paternity Pay, Statutory Maternity Pay, statutory adoption pay, Employment and Support Allowance, bereavement benefit, Carer's allowance and JSA(C) itself also count towards Class 1 contributions and are called "Credited Class 1 contributions".

Self-employed people do not pay Class 1 contributions, and thus may not claim JSA(C).

JSA(C) may be claimed for only 26 weeks in any benefit year. When entitlement to JSA(C) is exhausted, JSA(IB) may then become payable if eligible (see below).

If there is no entitlement to JSA(IB), a person can re-qualify for JSA(C) in a subsequent benefit year based on contributions paid in the relevant contribution years, providing that there has been a break in of at least twelve weeks. S/he must wait until the beginning of a new benefit year before s/he can claim again.

Income-based

The payment of money to individuals on low-incomes, who would otherwise be in a condition of some kind of deprivation is a kind of social assistance.[49]

People who are not eligible for JSA(C) may claim Income-based Jobseeker's Allowance, JSA(IB), which is means tested for each individual claimant and/or their dependents. People who are eligible for JSA(C) may also claim JSA(IB) for any additional payments due under that benefit (for family dependents, for example). JSA(IB) is payable only if the claimant has less than £16,000 in savings (correct as of May 2013). Payments are reduced if the claimant has savings between £6,000 and £16,000.[48]

Both forms of benefit face 100% marginal deductions if the individual earns more than a small amount – the 'disregard' – this is £5 per week for single people, £10 per week for couples and £20 per week for certain other groups such as some lone parents and disabled people. The 'disregard' has remained at the same nominal amount since the 1980s and has never been uprated with inflation, unlike benefits themselves. The benefit is withdrawn from those working 16 or more hours a week (though this does not apply to voluntary work).[52] Part-time students can claim provided they do not have more than 16 hours a week in teacher contact time and the course is not officially designated as full-time by the college (irrespective of the number of hours of contact time).

Work programmes

New Deal

During 2001 claims were of two stages, the first being an initial jobseekers agreement and allowance lasting for a period If claimants below the female state pension age have been unemployed for over twelve months, they will be placed on the New Deal scheme. Some may also enter the New Deal process early if they fall in special categories. From 2009, a Flexible New Deal scheme started using the private sector to provide tailored employment and skills support, with return-to-work performance incentives for the providers.

In Northern Ireland the New Deal was replaced in 2008 by a similar scheme known as Steps to Work. This scheme is administered by the Department for Employment and Learning which operates Jobs & Benefits Offices jointly with the Social Security Agency. During October 2009 the New Deal programmes were replaced by the Flexible New Deal programmes, these available to claimants still unemployed after a period of twelve months.[25]

The Work Programme

Work programmes ; Flexible New deal, New Deal for Young People, New Deal 25+, New Deal for Disabled people, New Deal for Lone parents, Pathways to Work, Progress2Work and Employment Zones, were replaced by The Work programme during June 2011.[53] On 6 March 2012 the UK Government announced benefits changes for prisoners at the end of their sentence and those claiming JSA. They would be sent on the work programme along with JSA claimants who had been claiming past 26 weeks. On the work programme they must sign a form to agree to a 30 hours a week of unpaid work or face sanctions of 6 months.[54] Unlike New Deal there is no choice of training or help setting up a business neither can the job seeker choose what type of unpaid work they do. In nearly all cases the unpaid placement involves shop work. From 2012, work placement advisors would receive £5,600 should they find work for a person leaving prison who keeps the job for two years.[22][55] According to the Government, from June 2011 only 1 in 5 participants in the Work Programme remained off benefits for over six months.[56]

Pensioners

Men who reach the women's State Pension age (currently just over 63 years; men's is 65) can still claim Jobseeker's Allowance, but must remain actively seeking work. Women can only claim until they reach the State Pension age. The State Pension age will rise to 66 for both men and women by 2020.[57]

A man can apply for Pension Credit on reaching the women's state pension age. This replaces Jobseeker's Allowance payments and he need no longer "sign on" at the JobCentre. National Insurance credits are paid by the Government on his behalf, even if he claims another benefit.

A woman must move from JSA to Pension Credit at the State Pension age.

See also

References

  1. ↑ Directgov. "Jobseeker's Allowance". Public services all in one place. HM Government. Retrieved 1 September 2012.
  2. ↑ Department for work and pensions (1 November 2011). "Iain Duncan Smith sets out next steps for moving claimants onto Universal Credit". Newsroom. HM Government. Retrieved 1 September 2012.
  3. ↑ Department for work and pensions. "Universal Credit". Policy. HM Government. Retrieved 1 September 2012.
  4. 1 2 "The Cabinet Papers - Insurance introduced". nationalarchives.gov.uk.
  5. ↑ Hansard → – UK Parliament HANSARD 1803–2005 – Retrieved 6 June 2012
  6. ↑ secondary – The World at War 1973 (Jeremy Isaacs) – The Internet Movie Database & TK one Ltd – Retrieved 6 June 2012
  7. ↑ Disabled Persons (Employment) Act 1944 The National Archives – Retrieved 6 June 2012
  8. ↑ secondary supporting reference – D Butler Business Planning Reed Educational and Professional Publishing – ISBN 1-136-42348-6 – Retrieved 6 June 2012
  9. ↑ S.I. 1996 No. 2367
  10. ↑ Great Britain: Parliament: House of Commons – Welfare Reform Bill The Stationery Office, 1 February 2011 Retrieved 6 June 2012
  11. ↑ The Crown – Jobseekers Act 1995 – Retrieved 6 June 2012
  12. ↑ Lord Slynn of Hadley, Lord Cooke of Thorndon, Lord Hope of Craighead, Lord Millett, Lord Scott of Foscote (the House of Lords Judgment – [2001] UKHL 33) parliament:28 JUNE 2001 Retrieved 6 June 2012
  13. ↑ The Secretary of State for Social Security & The Crown S.I. 1996 No. 2367 Library of HM Dept. of Revenue and Customs – Retrieved 6 June 2012
  14. ↑ The Jobseeker's Allowance Regulations 1996 – Explnatory note – Retrieved 8 June 2012
  15. ↑ B.J.Pol.S.507–532 30. The Jobseeker's Allowance (Mandatory Work Activity Scheme) Regulations 2011 (S.I. 2011 No. 688): report by the Social Security Advisory Committee under Section 174 (1) of the Social Security Administration Act 1992 and statement by the Secretary of State for Work and Pensions in accordance with Section 174 (2) of that Act (PDF). Social Security Advisory Committee, Great Britain Department for Work and Pensions. The Stationery Office, 14 March 2011. ISBN 0-10-851040-9. Retrieved 6 June 2012. provided by Sir Tilt
  16. ↑ Social Security Advisory Committee, Great Britain Department for Work and Pensions: The Jobseeker's Allowance (Employment, Skills and Enterprise Scheme) Regulations 2011 (S.I.2011 No.917), Issue 917 → The Stationery Office, 31 March 2011 – Retrieved 6 June 2012
  17. ↑ P Shiner et al Public Interest lawyers Retrieved 6 June 2012
  18. ↑ legislation.gov : Jobseeker's Allowance (Employment, Skills and Enterprise) Regulations 2011 the National Archives – Retrieved 6 June 2012
  19. ↑ "George Osborne's sad triumph". The Economist.
  20. ↑ National Audit Office – Department for Work and Pensions: Communicating with Customers : Report (House of Commons papers Series) The Stationery Office, 31 May 2009 ISBN 0-10-295478-X Retrieved 11 June 2012
  21. ↑ Great Britain: National Audit Office – Dealing with the Complexity of the Benefits System: Department for Work and Pensions The Stationery Office, 18 November 2005 ISBN 0-10-293615-3 Retrieved 11 June 2012
  22. 1 2 "Government launches employment support for prisoners" (Press release). Department for Work and Pensions. 6 March 2012. Retrieved 11 January 2014.
  23. ↑ secondary – J Herring – Criminal Law Palgrave Macmillan, 21 March 2011 – retrieved 11 June 2012
  24. ↑ P Inman reporting 8th of March 2001 (12 December 2001), New Deal enters the fast lane, London: The Guardian, retrieved 11 June 2012
  25. 1 2 I Mulheirn & V Menne, THE FLEXIBLE NEW DEAL :Making it work (PDF), Social Market Foundation (September 2008), retrieved 11 June 2012
  26. ↑ "Jobcentres 'tricking' people out of benefits to cut costs, says whistleblower". John Domokos. 1 April 2011. Retrieved 9 July 2012.
  27. ↑ "Jobseeker's Allowance (JSA)". www.gov.uk.
  28. ↑ "How to claim JSA without using the Government Gateway". whatdotheyknow.com.
  29. 1 2 P Weinert, Employability: From Theory to Practice, Transaction Publishers, 2001, ISBN 0-7658-0879-X, retrieved 11 June 2012
  30. ↑ secondary – Cambridge Dictionary Online defining sine qua non in Weinert – Retrieved 11 June 2012
  31. ↑ secondary – D.Harper – etymonline- Retrieved 11 June 2012
  32. ↑ Van Vugt, J. P. A.; Peet, J. (2000). Social Security and Solidarity in the European Union: Facts, Evaluations, and Perspectives. Springer. p. 186. Retrieved 11 January 2014.
  33. ↑ Jayashuri, Kanishka (1 December 2001). "Autonomy, Liberalism and the new Contractualism". In Carney, T.; Ramia, G.; Yeatman, A. Liberalism Contractualism and Citizenship. Federation Press. p. 57. Retrieved 11 January 2014.
  34. ↑ S White. "B.J.Pol.S.507–532 30" (PDF). Cambridge University Press 2000. Retrieved 6 June 2012.
  35. 1 2 Benefits suspended for 18,750 jobseekers in Wales
  36. 1 2 3 4 5 6 7 8 "Jobseeker's Allowance (JSA)". www.gov.uk.
  37. ↑ Patrick Butler (24 March 2015). "Benefit sanctions: the 10 trivial breaches and administrative errors". the Guardian. Retrieved 21 July 2015.
  38. ↑ The Independent (London) The 11 most senseless benefit sanction decisions known to man
  39. ↑ John Domokos (22 March 2013). "The jobseeker's story: 'I'm not proud to say I've gone begging'". The Guardian. Retrieved 14 July 2015.
  40. ↑ Patrick Wintour (23 October 2014). "Benefit sanctions regime for unemployed to be investigated by MPs". Guardian newspapers. Retrieved 24 July 2015.
  41. 1 2 3 Patrick Wintour (14 May 2014). "More sanctions imposed on jobseeker's allowance claimants". the Guardian. Retrieved 24 July 2015.
  42. ↑ BBC (London) 7/09/2014 'Benefit sanctions harmed my mental health'
  43. ↑ Patrick Butler (5 June 2015). "Disabled payment delay unlawful, judge rules". Guardian newspapers. Retrieved 8 June 2015.
  44. ↑ Wintour, Patrick (21 March 2013). "Jobcentre was set targets for benefit sanctions". The Guardian. London. Retrieved 29 December 2013.
  45. ↑ Amelia Gentleman (18 July 2012). "Food banks: a life on handouts". the Guardian. Retrieved 24 July 2015.
  46. ↑ Patrick Wintour (8 January 2015). "Government urged to suspend benefit sanctions regime". the Guardian. Retrieved 24 July 2015.
  47. ↑ "Mencap - Mencap deems JSA sanctions "grossly unfair for people with a learning disability"". mencap.org.uk.
  48. 1 2 3 4 5 6 7 8 "Jobseeker's Allowance (JSA)". GOV.UK. 2015-09-25. Retrieved 2015-11-03.
  49. 1 2 Social Security Administration (U.S.), Social Security Programs Throughout the World: Europe, 2010, Government Printing Office, 17 September 2010, ISBN 0-16-086399-6, retrieved 6 June 2012
  50. ↑ Jobseeker's Allowance (PDF), Department for Work and Pensions, June 2006, ISBN 978-1-84695-235-7, Leaflet QCJSAA5JP, retrieved 23 April 2010
  51. ↑ Leaflet INF1(JSA) 10/11 INF1JSARAMBV_102011_099_001
  52. ↑ Volunteering while getting benefits (PDF), Department for Work and Pensions, February 2010, ISBN 978-1-84763-054-4, DWP1023 v2.1, retrieved 4 May 2010
  53. ↑ Great Britain: Parliament: House of Commons: Work and Pensions Committee – Work Programme: providers and contracting arrangements, fourth report of session 2010–12, Vol. 1: Rreport, together with formal minutes, oral and written evidence, Volume 1 The Stationery Office, 8 May 2011 -ISBN 0-215-55940-1 Retrieved 9 June 2012
  54. ↑ DWP – welfare reform:the work programme Retrieved 11 June 2012
  55. ↑ "Steps to Work". Department for Employment and Learning. 2010. Retrieved 29 December 2013.
  56. ↑ "The Work Programme: The First Year" (PDF). Department of Work and Pensions. The Stationery Office. November 2012. p. 5. Retrieved 11 January 2014.
  57. ↑ "State Pension age timetables" (PDF). Department for Work and Pensions. 3 April 2013. Retrieved 11 January 2014.

External links

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